Exhibit 12
BERKSHIRE HATHAWAY INC.
Statement Regarding Calculation of Ratio of Consolidated Earnings to Consolidated Fixed Charges
(Dollars in millions)
Years Ended December 31, | ||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
Net earnings | $ | 7,308 | $ | 8,151 | $ | 4,286 | $ | 795 | $ | 3,328 | ||||||||||
Income tax expense | 3,569 | 3,805 | 2,059 | 590 | 1,997 | |||||||||||||||
Minority interests in earnings | 59 | 64 | 14 | 53 | 241 | |||||||||||||||
Equity in earnings of MidAmerican Energy Holdings Company | (237 | ) | (429 | ) | (359 | ) | (134 | ) | (85 | ) | ||||||||||
Fixed charges* | 875 | 614 | 840 | 1,069 | 986 | |||||||||||||||
Earnings available for fixed charges | $ | 11,574 | $ | 12,205 | $ | 6,840 | $ | 2,373 | $ | 6,467 | ||||||||||
Investment gains, pretax, included in earnings available for fixed charges | $ | 3,496 | $ | 4,129 | $ | 918 | $ | 1,488 | $ | 4,499 | ||||||||||
Fixed charges* | ||||||||||||||||||||
Interest on indebtedness (including amortization of debt discount and expense) | $ | 721 | $ | 472 | $ | 725 | $ | 968 | $ | 916 | ||||||||||
Rentals representing interest | 154 | 142 | 115 | 101 | 70 | |||||||||||||||
$ | 875 | $ | 614 | $ | 840 | $ | 1,069 | $ | 986 | |||||||||||
Ratio of earnings to fixed charges* | 13.23 | x | 19.88 | x | 8.14 | x | 2.22 | x | 6.56 | x | ||||||||||
Ratio of earnings, excluding investment gains, to fixed charges* | 9.23 | x | 13.15 | x | 7.05 | x | 0.83 | x | 2.00 | x | ||||||||||
* | Includes fixed charges of finance businesses. Fixed charges of finance businesses were as follows: |
Years Ended December 31, | ||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
$ | 602 | $ | 337 | $ | 551 | $ | 775 | $ | 786 |
Excluding fixed charges of finance businesses the ratios of earnings to fixed charges were as follows:
Years Ended December 31, | ||||||||||||||||||||
2004 | 2003 | 2002 | 2001 | 2000 | ||||||||||||||||
Including investment gains | 40.19 | x | 42.84 | x | 21.76 | x | 5.44 | x | 28.41 | x | ||||||||||
Excluding investment gains | 27.38 | x | 27.94 | x | 18.58 | x | 0.37 | x | 5.91 | x |